Talkin� CALPIA by Z5HN4T6E


									California Prison Industry Authority
     CALPIA’s Statutory Authority

Authorized by Penal Code Sections 2800
through 2818.
               CALPIA Statutory Purpose:
               (Penal Code Section 2801)
(A) To develop and operate industrial, agricultural, and service enterprises
employing prisoners in institutions under the jurisdiction of the Department of

(B) To create and maintain working conditions within the enterprises as much
like those which prevail in private industry as possible, to assure prisoners
employed therein the opportunity to work productively, to earn funds, and to
acquire or improve effective work habits and occupational skills.

(C) To operate a work program for prisoners which will ultimately be self-
supporting by generating sufficient funds from the sale of products and services
to pay all the expenses of the program, and one which will provide goods and
services which are or will be used by the Department of Corrections, thereby
reducing the cost of its operation.
       Penal Code Section 2805
• Provides that the authority shall have the power
  to establish new industrial, agricultural and
  service enterprises which it deems appropriate,
  to initiate and develop new vocational training
  programs, and to assume jurisdiction over
  existing vocational training programs. The
  authority shall have control over and the power
  to buy and sell all equipment, supplies and
  materials used in the operations over which it
  assumes control and jurisdiction.
                What is CALPIA?
CALPIA is a state operated
entity reconstituted in 1983 that
provides productive work
assignments for inmates with an
emphasis on rehabilitation
through job training.
(Previously, California
Correctional Industries.)

CALPIA is overseen by an 11-
member Prison Industry Board
(PIB) that is chaired by the
Secretary of CDCR.
         CALPIA Success in Reducing
The recidivism rate of CALPIA
inmates is 25% lower than general
population inmates.

The recidivism rate for Career
Technical Education (CTE)
participants is 83% less than
general population inmates.

Incarceration cost avoidance from
CALPIA correctional industries
saves the General Fund $8.5
million per year.
(Bureau of State Audits, May
CALPIA is Self-Sufficient

            CALPIA receives no Budget
            Act funding.

            CALPIA is only authorized to
            sell to government entities
            and limited non-profits that
            serve schools.
                  CALPIA Pricing

CALPIA prices are lower than the
private sector nearly 60% of time,
which saved CALPIA’s five largest
customers $3.5 million in FY 2009-

For the remaining products,
CALPIA is competitively priced.
(Bureau of State Audits, May,
    CALPIA Operates 5 Programs
 Correctional Industries
 Joint and Free Venture (On behalf of CDCR)
   Joint Venture Program = Adult institutions
   Free Venture Program = Juvenile institutions

 Career Technical Education

 Inmate Employability Program

 California Identification Project (On behalf of CDCR)
  CALPIA Correctional Industries (CI)

• CALPIA provides approximately 5,000 work
  assignments, serving 7,000 inmates annually.

• CALPIA operates 60 enterprises in 22 adult

• CALPIA produces over 1,400 goods and

• Inmates volunteer for CALPIA jobs. There is a
  long waiting list for inmates to work for CALPIA.
 CALPIA Correctional Industries cont.
• Inmate workforce is provided by CDCR.
  CALPIA has limited ability to choose its inmate

• Inmates have opportunities to earn industry skill
  certificates that help them find employment.
  Inmates earn wages of $.30 to $.95 per hour
  before deductions.

• Inmates must complete GED within two years to
  continue participation.
CALPIA Favorably Impacts California’s
 CALPIA supports California businesses.

 Raw materials are purchased within CA.

 CALPIA’s 2008-09 sales and in-state expenditures had
  a $497 million multiplying benefit for the California

 Household income impact of $132 million.

 Total employment impact of 2,394 jobs.

   Source: January, 2010 study by associates of the
   University of Reno (
                        CI Benefits
• Recidivism rate of CALPIA participants is 25 percent lower than
  general population inmates.

    – Every ex-offender that does not return saves the state $49,000
      per year.

    – Lower recidivism increases public safety.

• Keeping inmates busy makes prisons safer for staff and inmates.

• CALPIA inmates pay back society. Up to 40% of inmate wages are
  deducted for victim restitution and fees.

• CALPIA produces quality products. CALPIA is ISO certified.

• CALPIA is the only entity in the world that trains inmates to be
  certified quality control auditors.
The Joint Venture Program (JVP) was created under the
state’s 1990 Prison Inmate Labor Initiative, Proposition

          Joint and Free Venture
• The Joint Venture Program (JVP) and its sister program for juvenile
  offenders, the Free Venture Program (FVP), provide vocational
  training opportunities within California’s correctional settings.

• The JVP Program benefits both private interests and the public

• Private sector companies employ adult and juvenile offenders inside
  institutions and pay industry-comparable wages, which must be at
  least the California minimum wage.

• The JVP offers businesses attractive benefits.
   Joint and Free Venture cont.

• The JVP complies with Prison Industry Enhancement
  Certification Program of the U.S. Department of Justice,
  which allows prison made goods to be traded in
  interstate commerce

• The JVP’s recidivism rate is approximately 9%.

• Counties may participate.
Joint and Free Venture deductions of inmates’ net wages (after taxes):
 20% for room and board.
 20% for restitution and victim compensation.
 20% sent directly for child and family support.
 20% deposited in mandatory savings account.
 20% placed in account for personal use.

The Career Technical Education Program (CTE)
provides real world vocational training in:

   Carpentry
   Construction labor
   Iron working
   Commercial diving
The CTE program increases
the chance of post-release
employment by enhancing
vocational skills, promoting
education, and providing
employment assistance.

The CTE program reduces
the cost of public works
CTE Recidivism Comparison
                                The CTE
                            program has a
                            recidivism rate
                              than that of
                             and CDCR’s
Career Technical Education

                             CTE re-incarceration
                             cost avoidance since

                             $11.8 Million
 CAL-EXPO CTE Savings Example
Labor Expense Cost Avoidance:
 12 CTE project participants X 672 project hours = 8,064 CTE project

 $64,512 typical labor cost (minimum wage $8 per hour).

 $4,838 CTE labor cost (inmate wage $.60 per hour).

 $64,512 - $4,838 = $59,674 labor expense cost avoidance.

Additional savings are realized from re-incarceration avoidance.
Total CTE Savings Since FY 2007/2008
Re-Incarceration Cost Avoidance: $11.8 Million.
Labor Cost Avoidance: $13.4 Million.
Program Cost: [$9.7 million].
Total Net Savings to State: $15.5 million.
             CTE Funding
 The CTE program started in 2006 as a contract program for CDCR.
 The program was originally intended to provide CDCR with modular
  buildings and facility maintenance services to fund the program.
 CDCR demand for modular buildings has ceased and maintenance
  services opportunities have been slow to materialize.
 CDCR no longer funds the program.
 CALPIA currently spending $1 million per year for three small CTE
            CTE Funding cont.
 CALPIA must look for other sources of funding to
  continue the CTE program.

 The Prison Industry Board approved a legislative
  concept for an incentive-based direct appropriation to the
  CTE program that provides net savings to the General
  Fund (similar to SB 678, Leno, Chapter 2009).
  Inmate Employability Program
 Adds new industry certifications.

 Documents job skills, experience, work habits for
  future employers.

 Connects parolees with employers.
            California ID Project
• In September, 2010, the California Department of
  Corrections and Rehabilitation (CDCR), the California
  Prison Industry Authority (CALPIA) and the California
  Department of Motor Vehicles (DMV) agreed to work in
  collaboration to administer the California Identification
  Pilot Project (CIPP) for one year, at a cost of $378,000.

• Through this collaborated effort, more than 5,000
  California Identification cards were distributed to the
  paroling population of nine institutions during the pilot
    California ID Project Future
• CDCR has recommended moving forward with a
  planning team (CDCR, DMV and CALPIA) to implement
  a statewide California I.D. Program.

• CDCR needs to identify necessary funding to move
  forward with the statewide program.

• The impacts of realignment on the various institutions
  needs to be assessed in order to appropriately project
  the eligible population.
Statewide Average Inmate Assignments by Fiscal Year









       FY 06/07   FY 07/08   FY 08/09   FY 09/10   FY 10/11   FY 11/12
Revenue & Employees
      Impact of Realignment on
 20% reduction of CALPIA sales to CDCR ($19.9 M

 Potential reduction of approximately 725 inmate work
  assignments as a result of reduced CDCR sales.

 Potential reduction of approximately 72 civil service
  positions, or 12% of civil service employees.

 Potential reduction of available inmates for remaining
  production positions - will impact the CTE program and
  enterprises outside facilities, i.e. agriculture, food.
       CALPIA’s AB 109 Planning
CALPIA staff has developed an Enterprise Information
Worksheet (EIW) based on CDCR’s Institution Activation
Schedule (IAS), that clearly defines the needs of all CALPIA
enterprises at every institution.

The EIW includes key information for each location including:

 Operating hours and enterprise locations.

 CALPIA Enterprise needs - number of inmate workers
  required, inmate worker waiting pool required, and unique
  inmate criteria required (food handling clearance, no
  computer related crimes, etc.)

 Current Enterprise Workforce Information – identifies the
  yard/facility inmates are drawn from, the total available inmate
  workforce, the total number of assignments on the
        AB 109 Planning Cont.

• CDCR has adopted the CALPIA EIW format to identify
  CDCR programmatic resources.

• CALPIA will continue to monitor future IAS’s and utilize
  the EIW to track changes and continuity of operations.
           CALPIA Summary
• CALPIA is a self-sufficient state entity.
• CALPIA participants have a 25% lower recidivism rate
  than general population inmates.
• Career Technical Education participants have an 83%
  lower recidivism rate than general population inmates.
• CALPIA increases public safety, prison safety and saves
  the state more than $8.5 million per year from lower
  recidivism and millions more from lower cost goods and
• Realignment will have a significant impact on CALPIA.
• CALPIA is good policy.
                 THANK YOU

Please call to arrange a CALPIA enterprise tour:
(916) 358-1802
    :Cal pia

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